28 May 2026

Innovation plays an important role in supporting well-functioning financial markets and improving outcomes for consumers and businesses. As financial services evolve, we are focused on ensuring New Zealand’s regulatory environment supports responsible innovation while maintaining trust and confidence in the market.

A key part of this work is the introduction of a new on-ramp licence, which will provide innovative firms with a clearer pathway into a regulated environment. Building on insights from our fintech regulatory sandbox pilot, the on-ramp licence will support firms to test, develop and scale new products and services within a structured regulatory framework. It aims to reduce barriers to entry while maintaining appropriate consumer protections that underpin market confidence.

This work is part of our newly released innovation strategy, which sets out our medium-term approach to supporting innovation across financial markets.

The strategy focuses on:

• strengthening engagement with industry
• reducing barriers 
• improving coordination across the ecosystem 
• building capability to support responsible market development. 

Together, these initiatives signal a more proactive and connected approach to supporting innovation. See below for more about the on-ramp licence and our innovation strategy. 

We recently provided an overview of our work to the Minister of Commerce and Consumer Affairs, Hon. Cameron Brewer, following his appointment. The briefing outlines the key opportunities and challenges shaping New Zealand’s financial markets, and the FMA’s role in supporting confident participation, fair outcomes and sustainable market development.

In late April, we welcomed the Minister’s letter of expectations, which reinforces the importance of proportionate, risk-based regulation that enables innovation, and supports economic growth and well-functioning financial markets. We look forward to continuing to work constructively with the Minister, his office and MBIE officials as we progress key priorities in the coming months. 

Ngā manaakitanga,  
Liam Mason, Executive Director – Governance, Policy and Strategy and General Counsel

Innovation strategy sets a longer-term approach to support market innovation

FMA’s new innovation strategy focuses on strengthening engagement with the market, reducing barriers, and supporting responsible market development while maintaining strong regulatory oversight. 

The strategy is built around four key pillars:

• Pillar 1: Fintech and innovation core service offering - Strengthening the FMA’s support for companies on their journey to market by providing guidance via our Innovation Hub, expanding the sandbox initiative to introduce an on-ramp licence, and improving coordination across external and internal stakeholders.
• Pillar 2: Domestic and international engagement - Enhancing engagement with global and New Zealand-based regulators, private sector companies and industry bodies to better understand market challenges and ensure New Zealand remains connected to international developments.
• Pillar 3: Thematic exploration - Deepening the FMA’s focus on emerging areas such as virtual assets, payments, and artificial intelligence to inform a forward-looking and responsive regulatory approach.
• Pillar 4: Ecosystem education - Building capability across the market by supporting innovation programmes, improving guidance and resources, and sharing insights to reduce uncertainty and barriers.

Together, these pillars provide a cohesive and scalable framework to support innovation in New Zealand’s financial markets.

New on-ramp licence to provide a clearer pathway to market for innovative firms

The FMA is developing a new on-ramp licence, building on insights from our sandbox pilot to create a simpler pathway for innovative companies to enter the market. It will offer a transparent, scalable route that supports innovation, strengthens competition, and maintains strong regulatory safeguards.

The on-ramp licence will have appropriate guardrails, enabling companies to operate in a regulated environment while they build capability. By offering a more standardised, ‘off-the-shelf’ approach, it will reduce regulatory uncertainty, lower upfront costs, and remove some of the barriers associated with full licensing.

The regulatory sandbox pilot attracted strong demand and delivered valuable insights, while helping six firms test new products and services, with the majority identifying viable pathways to market. However, its bespoke and resource-intensive nature meant it was not scalable, highlighting the need for a more consistent and accessible entry pathway. The on-ramp licence responds directly to that need.

By using the on-ramp licence, firms can launch and grow within defined guardrails, such as limits on capital raising or investor exposure, helping balance innovation with consumer protection.

More information about the on-ramp licence and the application process will be available later this year. 

You can read more about the insights from our regulatory sandbox pilot in our innovation strategy.

Next steps on tokenisation 

In March 2026, we published our Tokenisation in financial markets submissions report. Summarising feedback from our 2025 public consultation, the report highlighted that New Zealand’s regulatory settings for virtual assets are unclear and spread across different laws. Some tokenised products sit outside financial markets regulation, creating uncertainty for businesses and gaps in consumer protection. Submitters also noted that in areas such as stablecoins and tokenised money, other jurisdictions are moving quickly to provide clearer regulatory frameworks, raising concerns that New Zealand risks falling behind.

The Australian Digital Finance Cooperative Research Centre recently published research estimating that digital finance could deliver economic gains for Australia of around AUD 24 billion annually (around 1 per cent of GDP). The research described digital finance as a once-in-a-generation transformation of the global financial system. The research highlights the importance of regulatory certainty in enabling innovation and capturing these benefits.
We see a clear opportunity for New Zealand to unlock similar value by providing more clarity around how existing regulatory settings apply, while ensuring appropriate consumer protections remain in place.

Over the coming months, we will:

• continue to engage regularly with industry
• work with market participants to create FAQs outlining how virtual assets (including securities, payments, and related products) are likely to be treated under current law 
• explore how our regulatory toolkit can be used to provide greater certainty.

If you would like to collaborate with us on this work, please email consultation@fma.govt.nz.

FMA Chief Executive to conclude term in January 2027

Our Chief Executive Samantha Barrass will not seek reappointment when her five-year term concludes. Samantha will continue to lead the FMA through to the end of her term in January 2027, and support a smooth transition process. The announcement is being made now, following confirmation of Samantha's decision, to allow sufficient time for a robust recruitment and transition process.

Engaging with industry helps the FMA stay connected to what is happening in the market, identify emerging risks, and provide clearer, more practical guidance. These conversations support a collaborative regulatory approach that promotes good conduct and better outcomes for consumers, markets and the wider financial system. 

The FMA engaged with industry across a range of events in May, including: 

• Institute of Finance Professionals New Zealand (INFINZ) Awards 
• FMA financial advice provider and credit transfer roundtables 
• Kernel Adviser Conference Christchurch 2026
• Kiwi Adviser Network Conference 2026
• Stewart Group Conference 2026 
• Kernel’s Next Chapter of Wealth Conference
• Government Innovation Showcase Aotearoa
• NZ RegCo’s inaugural listed issuer governance event 
• International Organisation of Securities Commissions (IOSCO) Annual Meeting

Left to right: Bill Moses (moderator), Ben Sheehan, Ernestynne Walsh and Kari Jones

Engagement on responsible AI and digital service delivery

FMA’s Executive Director of Operational Excellence and Enablement Kari Jones recently spoke on two national panels focused on responsible AI and digital service delivery, including at the Aotearoa Innovation Showcase and Digital Leadership Day.

Discussions explored the importance of maintaining accountability, trust and appropriate regulatory settings as AI becomes more embedded in decision-making and service delivery. Speaking alongside Emma MacDonald, Director at the Centre for Data Ethics (Stats NZ), Kari discussed what responsible AI looks like in practice, including the need to balance innovation and efficiency with empathy, transparency and consumer outcomes.

The sessions highlighted the importance of thoughtful and practical implementation of AI, particularly in contexts where decisions can directly affect people’s lives.

Financial advice provider forums return in July and August

We are pleased to confirm the dates and locations for our 2026 financial advice provider forums taking place across New Zealand and online during July and August.

These forums are an opportunity for financial advisers and financial advice providers to engage directly with the FMA, hear updates on key regulatory topics and connect with others across the sector. Financial advice providers will receive email invitations in the coming weeks with details of how to register. 

We look forward to engaging with you again through these forums.

Insights from climate-related disclosures

Earlier this week we published the 2026 Climate-related Disclosures Insights Report. The report is based on reviews of 62 climate statements from the second year of disclosures under New Zealand’s climate-related disclosure regime. We noted encouraging progress in reporting practices and a growing maturity across climate reporting entities. The report identified clearer report structures, an uplift in greenhouse gas emission disclosures and improved articulation of governance and risk management processes.

In addition, the report highlights where further progress is needed, particularly in the identification, assessment and disclosure of climate-related physical risks and their anticipated impacts. These challenges are not unexpected at this stage of the regime, and we anticipate disclosure quality and maturity will continue to improve incrementally as capability, data and analytical practices develop.

Sustainability-related disclosure guidance 

The FMA has published updated sustainability-related disclosure guidance that provides greater clarity on what good practice looks like for the disclosure and communication of financial products with sustainability-related characteristics.

Key features of the updated guidance include:

• clearer scope and terminology
• practical examples informed by consultation feedback
• a principles-based framework focused on clarity, substantiation, consistency and effective management of third-party involvement.

We encourage issuers to review the guidance to ensure their sustainability-related disclosures provide investors with clear, accurate and accessible information.

You can also listen to our latest 5 Mins with the FMA podcast for an overview of the guidance and what’s changed. 

Council of Financial Regulators progressing work on insurance affordability

FMA Chief Economist Philip Stevens, alongside our Economics and Research, Insurance, and Matangirua teams, has been working with the Council of Financial Regulators (CoFR) on a review of insurance affordability. Cabinet asked CoFR members to undertake a six-month focused review of residential insurance (house and contents) pricing and affordability, including identifying data gaps and examining the drivers of insurance costs and market dynamics. The CoFR members are from the Reserve Bank of New Zealand, Treasury, the Ministry of Business, Innovation and Employment, the Commerce Commission and the FMA.

The review aims to improve understanding of residential insurance affordability and identify areas where policy action may be warranted. During March and April, CoFR members met and received submissions from insurers, banks, industry representatives and consumer groups. The review team has been working through the feedback and pulling together key findings and recommendations to report back to Ministers in early July.

Preparing for the Contracts of Insurance Act

Earlier this month, we sent a letter to chief executives of insurers outlining our expectations for how they should prepare for and implement the Contracts of Insurance Act, including how changes should be communicated to their customers.

FMA Director of Deposit Taking, Insurance and Advice Michael Hewes says that although the Contracts of Insurance Act does not come into force until November 2027, insurers are expected to be preparing now. 

“The Act represents a significant reform, not just a technical legal update. Effective implementation will take time, planning and sustained effort from insurers. Leaving preparation too late increases the risk of poor outcomes for consumers."

Reporting changes of directors and senior managers

As part of preparations for the Financial Markets Conduct Amendment Bill passing into legislation we have been working on a number of changes to simplify and streamline how we engage with licensees. This includes standardising how entities report changes of their directors and/or senior managers (DSM). From 29 May 2026 all licensed entities will be able to report these changes through the MyFMA portal for all market services, providing a simpler and more consistent process.

Existing obligations do not change - licence holders must continue to notify the FMA of changes to DSMs. The online form clearly sets out the information required, including all relevant 'fit and proper' questions and consent for background checks, and allows for entities to have DSM changes applied across multiple licences. Online submissions integrate directly with FMA systems, reducing manual handling and supporting faster, more reliable processing.

For more information on myFMA please see our website.

Regulatory returns open 1 July 

Regulatory returns are one of the tools the FMA uses to monitor licensed entities. This is a series of questions to obtain an up-to-date understanding of the nature, size and complexity of licensees, and relevant activities over the reporting period. The data is analysed over time to identify trends that can be used to inform subsequent monitoring activities.  

Returns are completed in the myFMA portal and need to be submitted by 30 September 2026, for the 12-month period 1 July 2025 to 30 June 2026. You will be notified via email with a link to submit the regulatory return. The portal opens on 1 July 2026.

Financial institutions 
This will be the first regulatory return for licensed financial institutions. The full question set and accompanying guidance is available here. We will be sending invitations to a webinar in the coming weeks, which will provide further information and practical guidance for financial institutions on completing and submitting the regulatory return.

Financial advice providers
All licensed financial advice providers are required to complete an annual regulatory return. To familiarise yourself with questions for financial advice provider regulatory returns, you can download our guide and refer to the FAQ here.  

MIS, DIMS, DIs, crowdfunding and peer-to-peer
Licensed managed investment scheme managers (MIS), discretionary investment management services providers (DIMS), derivatives issuers (DIs), crowdfunding service providers and peer-to-peer lending service providers are also required to submit their annual regulatory return by 30 September 2026.

Consultation on related party transactions involving managed investment schemes

Consultation is now open on our draft paper on related party transactions involving registered managed investment schemes. The paper outlines our expectations as well as how the FMA considers the law should be applied.

We invite interested stakeholders to provide feedback using the submission form by 12 June 2026.

Upcoming consultation on custody of client assets 

We will soon open consultation on our review of law and practices relating to custody of assets.  We will be seeking feedback on a discussion paper that aims to start a conversation with interested stakeholders. The paper provides an overview of the custody market and regulatory framework, summarises key insights from our monitoring, and identifies some issues and risks we have identified. We intend to hold an industry workshop after the paper is published. 

To stay informed, subscribe to our consultation alerts here. 

Class exemptions 

We have decided in principle to renew the following existing class exemptions:

• Financial Markets Conduct (Overseas registered Banks and Licensed Insurers) Exemption Notice 2021
• Financial Markets Conduct (Forestry Schemes) Exemption Notice 2021 
• Financial Markets Conduct (Property Schemes-Custody of Assets) Exemption Notice 2021 
• Financial Markets Conduct (Incidental Offers) Exemption Notice 2021
• Financial Markets Conduct (Licensed Independent Trustees of Restricted Schemes) Exemption Notice 2021
• Financial Markets Conduct (Overseas Subsidiary Balance Date Alignment) Exemption Notice 2021
• Financial Markets Conduct (Climate-related Disclosures – Overseas Banks and Insurers) Exemption Notice 2024  

Find out more here.

We may consult with interested stakeholders on the drafting of the exemption notices that will give effect to these decisions. If you would like to be added to the list of stakeholders, please email your request to exemptions@fma.govt.nz. Please specify the exemption notice(s) you are interested in. 

FMA discontinues CBL IPO Proceeding against the Hutchison Estate 

The FMA has discontinued its proceeding against the executor of the estate of Alistair Hutchison relating to the 2015 Initial Public Offering (IPO) by CBL Corporation Limited (CBL) (in liquidation).

Margot Gatland, the FMA’s Head of Enforcement, said following the FMA’s recent settlements of the IPO Proceeding against CBL Director Peter Harris and CBL, the FMA no longer considers it is in the public interest to pursue the Estate.

Insider trading thematic review finds most issuers have clear policies in place

FMA’s recent thematic review of insider trading controls among a sample of NZX-listed issuers found most have clear policies that set expectations, highlight risks, and guide staff on trading rules and approvals.

The review examined financial product dealing policies and supporting procedures, with the aim of promoting fair, efficient, and transparent markets, and assessing how issuers are meeting their obligations under the Financial Markets Conduct Act 2013.

The review found that issuers generally have solid controls in place to manage insider trading risk. However, there is scope to strengthen consistency and rigour in some areas, including trade approval processes. These processes would benefit from clearer documentation and stronger checks around access to material non-public information (MNPI), rather than relying on self-declarations.

Monitoring arrangements were also often unclear in practice, especially for non-senior staff. The review highlighted the importance of taking a broader view of who may have access to MNPI. More consistent training and communication would further support a strong culture of compliance.

Overall, the findings show issuers have foundational controls in place to manage insider trading risk, with targeted improvements helping to strengthen market confidence and support fair, well-functioning markets. 

Stay informed

Stay informed: Check out the FMA’s enforcement activity for more about the actions we take to protect investors and maintain market integrity.

Payment redirection fraud

The FMA is alerting businesses to a payment redirection scam involving compromised email accounts. Scammers gain access to email accounts of victims, monitor communications with trusted parties, and alter payment details in legitimate emails, such as client onboarding or invoice communications. In some cases, the original email is deleted and replaced with a fake email to avoid detection.

Victims then act on the amended instructions, transferring funds to the fraudulent accounts. Funds are typically moved rapidly across multiple accounts, making recovery difficult.

How to protect your clients: 

• Remind clients to stop and verify payment details where ‘Confirmation of Payee’ identifies a mismatch or partial match.
• Display your verified payment details clearly on your official website or another official channel.
• Encourage clients to contact you directly using official contact details if payment instructions appear inconsistent or unexpected.

FMA warns about a spike in social media ads linked to pump-and- dump schemes

The FMA is warning of a spike in social media advertisements linked to pump-and-dump schemes. Scammers are using fake profiles and deepfake videos or images of well-known business leaders and financial commentators to promote fake investment opportunities.
These ads and profiles direct users to private messaging groups, such as WhatsApp, to share false investment advice or promote fake investment platforms. 

In this latest wave, we are seeing new deepfakes of individuals including: 

• Sam Stubbs
• Graeme Hart
• Natasha Etschmann 
• Brent Coleman
• Roger Montgomery

We regularly publish warnings containing the names of businesses or individuals you should be wary of if you are planning to invest. 

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